HSBC Holdings reported strong second-quarter profit growth, announced a new share buyback program, and agreed to sell its Egyptian retail banking operations to Emirates NBD. The stock last closed at £15.846, up 33% year to date and 79.5% over the past year. The buyback and the planned sale highlight how the bank is reshaping its capital allocation and geographic footprint. The stock trades at a price-to-earnings ratio of 17.3 times, above the banks industry average of 9.6 times, while flagged risks include an unstable dividend record and a relatively high level of bad loans at 2.2% with a 46% allowance.
HSBC Holdings PLCStrong Q2 profit and new share buyback program are positive for HSBC.
Acquisition of HSBC's Egyptian retail operations expands Emirates NBD's footprint.